Basic Pay vs. Gross Salary: Is There a Legal Guideline for the Right Percentage?

HR - Aone Biz

Hi,

Looking at the basic pay structure, my friend said that basic pay should be 70% of the salary. Right now, I have allotted 50% of the gross salary as basic pay. Is there any law or case that guides us on this issue?

Warm Regards,
Ranjeet
A1bs

pushpagirish

It's not a rule that only this much percentage has to be calculated. Basically, it varies from 40% to 50% of the gross salary...

sujalhshah

Hi,

Do you think an employer can set the basic salary amount to anything they want? One of my friend's CTC is 25000, and the basic salary is only 1300 Rs. Is this possible? Are there any rules regarding the minimum basic amount?

ramneet.s

Basic salary should be just more than the minimum basic wages prevalent, but usually as a convention, it's 35% to 50% varying with company policies.

vigsysjesu

No minimum basic amount is prescribed by law, but normally it will be calculated as 40% to 50% of the gross. Your basic and DA constitute your real salary.

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